IRS Raises FSA Employee Contribution Limit to $3,300 for 2025

Employees planning to open a health care flexible spending arrangement (FSA) account can contribute $100 more for the 2025 plan year, according to the U.S. Internal Revenue Service (IRS). An FSA is a type of savings account that employees use to pay for certain medical expenses such as copayments, dental care, menstrual products, prescription medications, and over-the-counter drugs not covered by existing health plans. Contributions to an FSA account are deducted from the taxpayer’s wages. In 2024, people can contribute up to $3,200 through payroll deductions towards their FSA account. For 2025, this amount has been bumped to $3,300, said a Nov. 7 statement from the department....